Though divorces can be difficult on all involved parties, sometimes the thing that suffers the most is a small business. However, an individual’s company doesn’t have to become entangled in the legal process, according to Reuters.
Glenn Phillips, the founder of software consulting firm Forte Inc., knows all too well the effect that a divorce can have on a business. The innovator estimated that his legal battle cost him more than $200,000 in lost new business and his wife’s attorneys constantly forced him to disrupt business meetings to dig up reams of paperwork, the news source reported.
“The divorce forced me to reexamine my life and how the business was structured,” Phillips told Reuters. “I became more of a delegator.”
Depending on the state in which the divorce occurs, the process can become burdensome for a small business owner. The claims against an individual can hurt their business, and can make the legal battle a painful and public spectacle, according to the news source.
The National Federation of Independent Business reported that an amicable agreement between the two spouses can save a business, and an unbalanced outcome can lead to a dismemberment of the company.